Asia’s 10 ppm sulphur gasoil margins were little changed on Wednesday on mixed expectations of the U.S. supply situation despite ongoing refinery restarts.
A wider arbitrage on paper EFS swaps (LGOAEFSMc1) ahead of an expected drawdown in distillates inventories in the United States and potentially lower supplies from Russia amid an ongoing ban discussion supported the market further.

However, some participants commented that the window is still unworkable for northeast or southeast Asian cargoes to be sent to northwest Europe.

Refining margins (GO10SGCKMc1) for 10 ppm sulphur gasoil closed the trading session 2 cents higher at $38.01 a barrel.

Cash differentials (GO10-SIN-DIF) for 10 ppm sulphur gasoil closed lower at $1.48 a barrel as supply volumes stayed ample in Asia as evidenced from southeast Asian offers.

Jet fuel refining margins (JETSGCKMc1) fell by 14 cents to close at $36.54 a barrel. As a result, the regrade (JETREG10SGMc1) between jet fuel and 10 ppm sulphur gasoil widened slightly to $1.47 a barrel.

SINGAPORE CASH DEALS

– No gasoil or jet fuel deal.

INVENTORIES

– U.S. stockpiles of crude oil and distillates were expected to have dropped last week, whereas gasoline inventories were seen inching up, a preliminary Reuters poll showed on Tuesday. Six analysts polled by Reuters estimated on average that crude inventories dropped by about 1.6 million barrels in the week to Dec. 23. Analysts estimated that stockpiles of gasoline (USOILG=ECI) rose by about 100,000 barrels last week.

– Middle distillates stocks rebounded week-on-week to 3.089 million barrels, according to industry information service S&P Global Commodity Insights.
Source: Reuters